3 points Save Answer Question 10 Solar Corporation has the following book value balance sheet (Smil) for the year just ended: Asset 500 Debt 300 Equity 200 Total 500 Total 500 Solar's net income for the coming year is expected to be 560 milion. The company faces a 35% corporate tax rate Solar's debt consists of $200 million (face value) of bonds that have 20 years romaining to maturity. The bonds have a coupon rate of 4% and pay coupons four times per year. The bonds currently have a yield to maturity of 55% Solar has 15 million shares of common stock outstanding, currently selling at a price of $12.5 por share. Solar's stock has a bota of 155, the current risk-froorato is 0.5%, and the expected risk premium on the overall market portfolio is 6.5% What is Solar's weighted average cost of capital? Solar's not income for the coming year is expected to be $60 million. The company faces a 35% corporate tax rate Solar's debt consists of 500 milion (tace value) of bonds that have 20 years remaining to maturity. The bonds have a coupon rate of 4% and pay coupons four times per year. The bonds currently have a yield to maturity of 5.5% Solar has 15 milion shares of common slock outstanding, currontly weiling at a price of $12.5 per share. Solus stock has a bota of 1.55, the current risk-froo rate is 0.5%, and the expected risk premium on the overall market portfolio in 6.5% What is Solar's weighted average cost of capital? 8.18% 8.21% 7.53 6389 731